- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Real Estate Investing......... New update pg 7
Posted on 11/11/15 at 9:27 am to stevengtiger
Posted on 11/11/15 at 9:27 am to stevengtiger
quote:
This is correct. We have bought everything in the name of the LLC from the first property.
All my properties are under residential NOO loans, HOWEVER, I am about to cut a deal with a lender who will do commercial with me therefore I will be able to buy from the outset with either my S-corp or just do a LLC. Looking forward to it. However the terms and conditions will be a factor whether I go commercial or residential.
This post was edited on 11/11/15 at 9:30 am
Posted on 11/12/15 at 4:26 pm to stevengtiger
I love this thread. Thanks for updating it. I'm learning all that i can right now and plan on buying my first investment property next spring.
Posted on 11/18/15 at 11:29 am to wasteland
I feel the need to speak up to a couple points made in this thread, especially the absolutes ("you never get this" or "that's impossible")
I have 14 rental units in Baton Rouge consisting of condos, SFRs, and an 8plex. Been investing since undergrad and I'm 33 now.
ALL of my properties are in LLCs. This is basic step one. I'm an attorney and have seen liability cases from accidents at property almost bankrupt individuals. If properties are in a LLC or corporation then your personal assets are shielded from liability (unless perhaps gross negligence or intentional misconduct).
Regarding getting a loan for a llc: I have never had a problem getting a loan for an LLC. The down payment and interest rate will be higher and probably variable but that has more to do with the fact that your buying an investment property as opposed to primary residence. More risk to bank that you will just walk away if things go south.
And transferring a property under a personal loan to an llc also shouldn't be a problem because 1)the bank maintains first lien on the property and can foreclose if the note isn't paid and 2) if a property is transferred to a llc the individual remains liable on the note. Just because you transfer ownership of property doesn't mean you you change guarantees under the mortgage. So from the banks perspective a) they still have title on the property if note isn't paid and b) you are still liable under this original note. Perhaps you need to alert the bank of the transfer but they will have no problem if you are transferring to shield personal liability.
Anyone else have other stories pertaining to this? Always curious to learn more.
I have 14 rental units in Baton Rouge consisting of condos, SFRs, and an 8plex. Been investing since undergrad and I'm 33 now.
ALL of my properties are in LLCs. This is basic step one. I'm an attorney and have seen liability cases from accidents at property almost bankrupt individuals. If properties are in a LLC or corporation then your personal assets are shielded from liability (unless perhaps gross negligence or intentional misconduct).
Regarding getting a loan for a llc: I have never had a problem getting a loan for an LLC. The down payment and interest rate will be higher and probably variable but that has more to do with the fact that your buying an investment property as opposed to primary residence. More risk to bank that you will just walk away if things go south.
And transferring a property under a personal loan to an llc also shouldn't be a problem because 1)the bank maintains first lien on the property and can foreclose if the note isn't paid and 2) if a property is transferred to a llc the individual remains liable on the note. Just because you transfer ownership of property doesn't mean you you change guarantees under the mortgage. So from the banks perspective a) they still have title on the property if note isn't paid and b) you are still liable under this original note. Perhaps you need to alert the bank of the transfer but they will have no problem if you are transferring to shield personal liability.
Anyone else have other stories pertaining to this? Always curious to learn more.
Posted on 2/22/16 at 4:42 pm to jdutto3
Anything new?
This post was edited on 2/24/16 at 8:43 pm
Posted on 2/22/16 at 6:18 pm to jimbeam
(no message)
This post was edited on 2/23/16 at 7:21 pm
Posted on 8/22/16 at 10:14 am to camerad7
Any updates on this thread stevengtiger? I'm interested in your progress.
This post was edited on 8/22/16 at 10:15 am
Posted on 8/22/16 at 10:34 am to bluemoons
Since my last bump, I have commented more in Fat Bastards thread but we have been fairly busy.
We bought the house from Pg 7 along with another rental house. We bought a flip project in March or so, rehabbed and closed on July. Have another flip house in title right now and trying to close in the next few weeks.
Totals/Updates:
- 4 rent houses with great tenants in each one. Last two bought with our line of credit and rolled into 5/1 15 year loans 60 days later.
- 2 completed flips with third in contract.
- Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.
- We have turned our focus almost exclusively to foreclosures. We have found that if you can get through the BS that comes with buying/selling one, the money is a lot better on flips and is easier to roll into a more fixed product from the bank.
New flip property under contract is a mobile home in pretty good shape.
2010 model
3 bedroom/2 full baths
2,400 square feet
Needs paint, flooring, appliances and a few fixtures.
Cost $55K and estimated rehab is between $8K-9,500.
Similar properties selling for around $110,000 in the area.
We recently lost what could have been our best deal ever. Great 4 bedroom foreclosure. VA owned property asking $82K. Offer $75K cash and got turned down. 3 weeks later VA drops price to $74K and we offer full price that morning to find out someone else was in before us. The house needed about $35K for rehad but could have sold for $160K at a minimum. We were pissed because it seemed like a shady deal with the VA. Someone made some money.
We bought the house from Pg 7 along with another rental house. We bought a flip project in March or so, rehabbed and closed on July. Have another flip house in title right now and trying to close in the next few weeks.
Totals/Updates:
- 4 rent houses with great tenants in each one. Last two bought with our line of credit and rolled into 5/1 15 year loans 60 days later.
- 2 completed flips with third in contract.
- Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.
- We have turned our focus almost exclusively to foreclosures. We have found that if you can get through the BS that comes with buying/selling one, the money is a lot better on flips and is easier to roll into a more fixed product from the bank.
New flip property under contract is a mobile home in pretty good shape.
2010 model
3 bedroom/2 full baths
2,400 square feet
Needs paint, flooring, appliances and a few fixtures.
Cost $55K and estimated rehab is between $8K-9,500.
Similar properties selling for around $110,000 in the area.
We recently lost what could have been our best deal ever. Great 4 bedroom foreclosure. VA owned property asking $82K. Offer $75K cash and got turned down. 3 weeks later VA drops price to $74K and we offer full price that morning to find out someone else was in before us. The house needed about $35K for rehad but could have sold for $160K at a minimum. We were pissed because it seemed like a shady deal with the VA. Someone made some money.
Posted on 8/22/16 at 12:22 pm to jdutto3
quote:
and have seen liability cases from accidents at property almost bankrupt individuals.
and as discussed earlier you can get a commercial liability umbrella policy. Or do both. Nobody i know who has this has been screwed over by bad tenants and lost their arse.
quote:
I have never had a problem getting a loan for an LLC.
and yet again, the issue at hand we have discussed here is lenders that i have seen and known will not originate NOO residential loans to LLC's in my experience. only will they originate commercial loans to LLC's which you can then use for residential. Not all lenders do commercial loans to be used on residential NOO properties. You have to search.
quote:
And transferring a property under a personal loan to an llc also shouldn't be a problem
well sadly it is. I've known many investors who once have transferred title the bank has activated the DUE ON SALE CLAUSE!
quote:
Perhaps you need to alert the bank of the transfer but they will have no problem if you are transferring to shield personal liability.
Absolute BS. Plenty have had trouble with it. see above.
Posted on 8/22/16 at 12:27 pm to Fat Bastard
Who are some of the banks you guys are working with for your commercial loans? Maybe I should start another thread on this?
Posted on 8/22/16 at 12:42 pm to stevengtiger
quote:
Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.
yeah i just got a unsecured LOC from my local bank the other day. I wasn't locking up my money in checking into CD's just to please the bank. I didn't get the full amount that i asked for but it will do for now.
I'm getting some public record crap straight with IRS now on my credit report. I'm looking at a SFH buy and hold with a COC return of right at 20%. monthly positive cashflow is unreal after a 25% down payment. traditional financing. I've got two different traditional lenders i use but may be looking at the third due to the commercial lending aspect. They do not care about my credit (even though it is excellent). they look at the deal itself. I've still got private financiers if need be but that will be for later on when needed most. those tweener properties that are a little too much for a cash buy and not worth traditional financing are good to finance privately. put your 50% down @ 8% or 10% for 10 years. may not be much cashflow but you can get those paid off fairly quickly. Or if you just run out of fannie mae backed mortages. then you have no choice but to go other routes.
This post was edited on 8/22/16 at 12:46 pm
Posted on 8/22/16 at 1:11 pm to stevengtiger
quote:
stevengtiger
That's great man. Would you mind if I emailed you and asked you a couple of questions about all this?
eta: bookmarked both of these threads.
This post was edited on 8/22/16 at 1:15 pm
Posted on 8/22/16 at 1:16 pm to Fat Bastard
for you guys doing foreclosures are you picking them up on the courthouse steps or are you buying them after they are back on the market?
Posted on 8/22/16 at 1:17 pm to bluemoons
(no message)
This post was edited on 8/22/16 at 2:19 pm
Posted on 8/22/16 at 1:18 pm to bobaftt1212
We are looking at them when they are coming back on the market. Lots of bank and VA foreclosures around my area.
Posted on 8/22/16 at 2:00 pm to stevengtiger
quote:
Lots of bank
ahhh yes REO's that did not sell at auction.
Posted on 8/22/16 at 2:07 pm to Fat Bastard
I wish I had more time to get more involved with the auction process. They are some great properties around me that don't get sold and end up on MLS.
Posted on 8/22/16 at 2:11 pm to stevengtiger
quote:
I wish I had more time to get more involved with the auction process. They are some great properties around me that don't get sold and end up on MLS.
stick with the known before the unknown so you do not get burned. you already have a roadmap and are doing fantastic. keep it up. smart buys.
the problem with some at auctions is you buy as is and do not get to inspect beforehand. may be different in other places. I just cannot bring myself to roll the dice on that.
Posted on 8/22/16 at 2:18 pm to Fat Bastard
No doubt. We will keep doing what we have been but I have always thought about it.
Agreed. I would not buy anything without inspection with maybe one or two exceptions.
quote:
I just cannot bring myself to roll the dice on that.
Agreed. I would not buy anything without inspection with maybe one or two exceptions.
Posted on 8/23/16 at 10:39 am to stevengtiger
so are you working with a realtor that understands how necessary it is to get you in to see them as soon as they come on the market? Whats your vetting process? I am in Chattanooga TN so I shouldn't be competing for the same properties. I just want to get the flip thing right the first time. To this point I have been a buy and hold investor.
Posted on 8/23/16 at 11:01 am to bobaftt1212
quote:
so are you working with a realtor that understands how necessary it is to get you in to see them as soon as they come on the market?
Yes. I will typically get an email/call within the first 24 hours of a property hitting MLS. He knows what our appetite is and if it fits our box, he calls and sets up a showing. If I can't make a showing, he will go see it and let me know if I need to get over there.
We get beat on some properties but it is usually not a timing issue, its because we offer to low. He knows our market very well for rental properties and flip properties. I could not stress how important he has been for us and I consider him a partner in my RE business and I'm pretty sure he does too.
Popular
Back to top
Follow TigerDroppings for LSU Football News